Connecticut Senate Bill SB00160

Connecticut 2012 Regular Session

• Introduced: 2/17/12
• Refer: 2/17/12

Caption

An Act Concerning The S.a.f.e. Mortgage Licensing Act.

Impact

The proposed legislation significantly impacts existing state laws concerning mortgage licensing by repealing and replacing various sections related to the definitions, qualifications, and administrative processes of mortgage lenders and brokers. It enforces stricter requirements on licensure, which include educational prerequisites and ongoing training, thereby potentially raising the bar for entry into the mortgage business. This regulatory shift aims to safeguard consumers by ensuring that only qualified individuals handle mortgage transactions, thus reducing the risk of fraudulent activities within the industry.

Summary

SB00160, referred to as the S.A.F.E. Mortgage Licensing Act, focuses on establishing minimum regulation standards for mortgage lenders and brokers within the state. The bill is designed to ensure that those involved in mortgage lending operations comply with educational and licensing requirements, aimed at enhancing the professionalism and accountability of the mortgage industry. One key aspect of the act is the incorporation of necessary procedures aligned with federal guidelines to streamline mortgage origination practices and protect consumers during transactions.

Contention

Despite the bill's intentions to increase consumer safety and improve the industry's integrity, there remains contention about the feasibility and implications of these higher standards. Some stakeholders in the financial sector argue that the additional educational and oversight requirements may create barriers for smaller and independent mortgage brokers, potentially limiting competition in the market. Additionally, concerns have been raised about the administrative burden placed on regulators to monitor compliance with the new rules, which could stretch existing resources within state agencies.